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A Comprehensive Analysis of the Best Practices in Applying Environmental, Social, and Governance Criteria within the Energy Sector

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  • Tetiana Zatonatska

    (Faculty of Economics, Taras Shevchenko National University, 01-601 Kyiv, Ukraine)

  • Oleksandr Soboliev

    (Faculty of Economics, Taras Shevchenko National University, 01-601 Kyiv, Ukraine)

  • Dmytro Zatonatskiy

    (SESE Academy of Financial Management, Ministry of Finance of Ukraine, 01-053 Kyiv, Ukraine)

  • Tetiana Dluhopolska

    (B. Havrylyshyn Education and Research Institute of International Relations, West Ukrainian National University, 46-027 Ternopil, Ukraine)

  • Marek Rutkowski

    (Institute of Public Administration and Business, WSEI University, 20-209 Lublin, Poland)

  • Natalia Rak

    (Institute of Public Administration and Business, WSEI University, 20-209 Lublin, Poland)

Abstract

This article embarks on a crucial exploration of the implementation and integration of environmental, social, and governance (ESG) criteria within the energy sector of European countries, with the ultimate objective of refining the energy legislation in Ukraine. The research delves into the evolving role of ESG standards as a cornerstone in corporate strategy and investment, transitioned from its roots in socially responsible investing to a comprehensive framework that intertwines ethical, environmental, and governance considerations with financial analysis. The main thrust of the study is the following: firstly, it provides a panoramic overview of ESG applications within European energy projects, underscoring pivotal policies, strategies, and instances of successful ESG standard incorporation. Secondly, it benchmarks and compares ESG practices across Europe’s energy sector to distill best practices and their consequential trends and impacts. Lastly, this study converges these European insights to forge pragmatic recommendations for Ukraine’s energy legislation, aiming for an elevated integration of ESG standards that are in step with European benchmarks. The anticipated outcomes offer recommendations for enhancing Ukraine’s energy sector with robust ESG standards, proposing steps that align with the country’s newly adopted Energy Strategy 2050 and international sustainability goals.

Suggested Citation

  • Tetiana Zatonatska & Oleksandr Soboliev & Dmytro Zatonatskiy & Tetiana Dluhopolska & Marek Rutkowski & Natalia Rak, 2024. "A Comprehensive Analysis of the Best Practices in Applying Environmental, Social, and Governance Criteria within the Energy Sector," Energies, MDPI, vol. 17(12), pages 1-25, June.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:12:p:2950-:d:1415393
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    References listed on IDEAS

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    1. Gunnar Friede & Timo Busch & Alexander Bassen, 2015. "ESG and financial performance: aggregated evidence from more than 2000 empirical studies," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 5(4), pages 210-233, October.
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    Cited by:

    1. Tetiana Zatonatska & Oleksandr Soboliev & Artem Artyukhov & Dmytro Zatonatskiy & Valeriy Balan & Tomasz Wołowiec & Dariusz Woźniak, 2025. "Sustainable Energy Investments: ESG-Centric Evaluation and Planning of Energy Projects," Energies, MDPI, vol. 18(8), pages 1-24, April.
    2. Jarosław Brożek & Anna Kożuch & Marek Wieruszewski & Roman Gornowicz & Krzysztof Adamowicz, 2025. "Characterization and Evaluation of the Organizational and Legal Structures of Forestry in the European Union," Sustainability, MDPI, vol. 17(13), pages 1-35, June.
    3. Mustafa Yucel & Sevgi Yucel, 2024. "Environmental, Social, and Governance (ESG) Dynamics in the Energy Sector: Strategic Approaches for Sustainable Development," Energies, MDPI, vol. 17(24), pages 1-19, December.

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